Annual Report 2020 Amarin Printing and Publishing Public Company Limited ANNUAL REPORT 2020 AMARIN PRINTING and PUBLISHING PUBLIC COMPANY LIMITED CONTENTS
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Annual Report 2020 Amarin Printing and Publishing Public Company Limited ANNUAL REPORT 2020 AMARIN PRINTING AND PUBLISHING PUBLIC COMPANY LIMITED CONTENTS 5 Financial Overview 8 Ratio Analysis 10 Biography of the Company’s Founder 12 Company Profile 15 Message from the Chairperson 17 Message from the Chairman of the Executive Committee 19 Report of the Audit Committee 23 Report of the Sustainability and Risk Management Committee 25 Report of the Corporate Governance Committee 27 Report of the Nomination and Remuneration Committee 28 Report on Board of Directors’ Responsibility for Financial Statements 30 The Board of Directors 32 The Executive Committee 34 Management Team 36 Corporate Social Responsibility 42 Key Events BUSINESS OVERVIEW 49 Shareholding Structure 50 Business Outlook and Competition 56 Revenue Structure 57 Summary of Financial Statements & Analysis of AMARIN’s Financial Position and Operating Results 61 Analysis and Explanation by the Management 64 Risk Factors AMARIN CORPORATE PROFILE 67 General Information and Other Significant Information 69 Shareholders 71 Policy on Dividend Payment MANAGEMENT STRUCTURE 73 Organizational Structure 74 The Board of Directors 75 Details of the Board of Directors 89 Details of the Executive Director and Chief Financial Officer 90 Details of the Executive Director 91 Details of the Company Secretary 92 Table List of Amarin’s Board / Committee Members and Executives 93 Directors with Signing Authority 95 Shareholding of Board Members and Executives 96 Self-Assessment 98 Attendance in the Company’s Board / Committee Meetings 99 Remuneration for Board Members and Top Executives 102 Human Resources 109 Development of Board Members / Executives CORPORATE GOVERNANCE 111 Corporate Governance Policy 139 Intercompany Transactions 141 Independent Auditor’s Report 146 Statement of Financial Position 148 Statement of Comprehensive Income 149 Statement of Changes in Equity 153 Statement of Cash Flows 155 Notes to the Financial Statements Financial Overview Consolidated Financial Statements Separate Financial Statements (Unit: Million baht) % % 2019 2020 increase 2019 2020 increase (decrease) (decrease) Statements of Financial Position Current Assets 1,441.22 2,040.80 41.60% 1,048.70 1,334.25 27.23% Total Assets 5,284.16 5,416.33 2.50% 6,761.74 6,618.76 (2.11%) Total Liabilities 1,111.36 1,195.18 7.54% 430.49 387.73 (9.93%) Shareholder’s Equity 4,172.80 4,221.16 1.16% 6,331.26 6,231.03 (1.58%) Paid-up Registered Capital 998.28 998.28 0.00% 998.28 998.28 0.00% No. of Shares (Million) 998.28 998.28 0.00% 998.28 998.28 0.00% Statements of Comprehensive Income Income from Sales and Services 3,103.94 2,775.50 (10.58%) 1,639.02 1,176.45 (28.22%) e Other Incom 164.52 161.61 (1.77%) 54.29 41.69 (23.21%) Total Income 3,268.46 2,937.11 (10.14%) 1,693.31 1,218.14 (28.06%) Cost of Goods Sold 1,975.77 1,853.83 (6.17%) 1,173.24 889.78 (24.16%) Net Profit before 1,292.70 1,083.29 (16.20%) 520.07 328.37 (36.86%) Operating Expense Operating Expenses 1,087.49 900.57 (17.19%) 365.69 303.81 (16.92%) Net Profit from Operating 205.21 182.72 (10.96%) 154.38 24.56 (84.09%) Interest Paid 8.90 5.08 (42.95%) 1.90 1.16 (39.02%) Share of Loss of Associates 0.92 (2.71) (394.40%) - - 0% Corporate Income Tax 29.51 4.26 (85.57%) 28.32 1.31 (95.37%) Profit 167.72 170.67 1.76% 124.16 22.08 (82.21%) Net Profit 167.72 168.15 0.26% 124.16 19.57 (84.24%) Earnings per Share (baht) 0.17 0.17 1.76% 0.12 0.02 (82.21%) Amarin Printing and Publishing Public Company Limited 5 Consolidated Financial Statements Total Assets Total Liabilities Shareholder’s Equity (Thousand baht) (Thousand baht) (Thousand baht) 3,970,659 6,167,449 5,579,138 5,416,332 5,284,162 4,221,157 4,172,798 4,074,960 3,901,058 4,740,565 2,092,489 1,678,079 1,195,176 1,111,364 769,906 2016 2017 2018 2019 2020 2016 2017 2018 2019 2020 2016 2017 2018 2019 2020 Total Income Net Profit Earnings per Share (Thousand baht) (Thousand baht) (Baht) 172,681 170,669 167,717 0.17 0.17 0.17 (2.86) (0.30) (163,937) 3,268,464 (628,116) (163,937) 2,998,242 2,937,111 2,237,189 1,940,727 2016 2017 2018 2019 2020 2559 2560 2561 2562 2563 2559 2560 2561 2562 2563 6 Annual Report 2020 Separate Financial Statements Total Assets Total Liabilities Shareholder’s Equity (Thousand baht) (Thousand baht) (Thousand baht) 6,331,256 6,276,978 6,107,900 6,231,028 6,824,336 6,800,773 6,761,742 6,618,759 3,667,233 2,617,495 1,049,738 716,436 523,794 430,486 387,731 2016 2017 2018 2019 2020 2016 2017 2018 2019 2020 2016 2017 2018 2019 2020 Total Income Net Profit Earnings per Share (Thousand baht) (Thousand baht) (Baht) 1.00 219,616 195,316 169,078 124,157 1,823,022 1,760,606 1,748,303 1,693,309 0.35 1,218,143 0.17 0.12 22,082 0.02 2016 2017 2018 2019 2020 2016 2017 2018 2019 2020 2559 2560 2561 2562 2563 Amarin Printing and Publishing Public Company Limited 7 Ratio Analysis Consolidated Financial Statements 2018 2019 2020 Current Ratio Current Ratio Time 2.25 1.62 2.29 Quick Ratio Time 1.77 1.16 1.05 Liquidity Ratio (cash basis) Time 0.71 0.65 0.76 Receivable Turnover Time 5.30 5.35 5.04 Average Collection Period Day 68 67 71 Inventory Turnover Time 5.91 4.81 4.87 Inventory Turnover Period Day 61 75 74 Account Payable Turnover Time 6.70 4.47 4.86 Payment Period Day 54 81 74 Cash Cycle Day 75 62 71 Profitability Ratio Gross Profit Margin % 29.05 36.35 33.21 Operating Profit Margin % 8.84 6.64 6.49 Other Income Ratio % 6.65 5.03 5.50 Cash per Profitability Ratio % 255.59 289.53 374.03 Net Profit Margin % 5.80 5.13 5.81 Return on Equity % 4.36 4.07 4.07 Efficiency Policy Ratio Return on Total Assets % 2.96 2.93 3.19 Return on Fixed Assets % 16.54 14.66 18.84 Assets Turnover Time 0.51 0.57 0.55 Financial Policy Ratio Debt to Equity Time 0.51 0.27 0.28 Interest Coverage Time 54.70 171.44 132.57 Dividend Payout % 40.18 71.43 70.19 Note: 1/ Dividends pay from net profit according to the financial statements proposed by the Board of Directors which is still awaiting approval from the Annual General Meeting of shareholders for the year 2021 on April 27, 2021. 8 Annual Report 2020 Separate Financial Statements 2018 2019 2020 Current Ratio Current Ratio Time 4.97 3.66 5.23 Quick Ratio Time 3.50 2.84 1.59 Liquidity Ratio (cash basis) Time 0.68 0.80 0.55 Receivable Turnover Time 4.72 4.52 3.63 Average Collection Period Day 76 80 99 Inventory Turnover Time 4.79 4.89 4.10 Inventory Turnover Period Day 75 74 88 Account Payable Turnover Time 9.23 9.87 9.67 Payment Period Day 39 36 37 Cash Cycle Day 112 117 150 Profitability Ratio Gross Profit Margin % 30.05 28.42 24.37 Operating Profit Margin % 12.84 9.42 2.09 Other Income Ratio % 3.37 3.21 3.42 Cash per Profitability Ratio % 143.30 168.12 605.89 Net Profit Margin % 9.67 7.33 1.81 Return on Equity % 2.73 1.97 0.35 Efficiency Policy Ratio Return on Total Assets % 2.48 1.83 0.33 Return on Fixed Assets % 6.29 4.63 2.67 Assets Turnover Time 0.26 0.25 0.18 Financial Policy Ratio Debt to Equity Time 0.08 0.07 0.06 Interest Coverage Time 38.78 136.26 128.09 Amarin Printing and Publishing Public Company Limited 9 Biography of the Company’s Founder Chukiat Utakapan was born to Khun Rat and Khun Rarieb “The Amarin business has been growing consistently. Utakapan on 10 May 1942 in Amphoe Rueso, Changwat People thought I was visionary. That’s not true. I believe Narathiwat, in a family of six children. Following his I have more mindfulness. I had average intelligence. Matthayom 8 graduation from Mahavajiravudh Songkhla This was indicated since my secondary education School, he continued his tertiary education at the Faculty when every year the report book was returned with the of Arts, Chulalongkorn University. He began his working teacher’s remark stating ‘average intelligence’. In business, life at the Tourism Promotion Organization of Thailand mindfulness is more important than intelligence. If you before moving on to take up the post of a proofreader let intelligence lead, you could get out of control. So, at Thai Wattana Panich Company Limited where he was let mindfulness lead! Or at least use your mindfulness subsequently promoted to take charge of “Wittayasarn”, to regulate your intelligence. Be conscious of your own the teachers’ journal, as its Managing Editor. limitations; don’t get senselessly greedy. Carry out what you have thought out mindfully with perseverance. Don’t Khun Chukiat eventually turned his attention to public ever give in and life will be happy, success will follow.